Core Insights - Blackstone Secured Lending Fund (BXSL) reported quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $0.81 per share, and down from $0.89 per share a year ago, representing an earnings surprise of -4.94% [1] - The company posted revenues of $344.8 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.61%, but up from $327.06 million year-over-year [2] - The stock has underperformed the market, losing about 3.6% since the beginning of the year compared to the S&P 500's gain of 7.1% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.82 on revenues of $359.73 million, and for the current fiscal year, it is $3.25 on revenues of $1.43 billion [7] - The estimate revisions trend for Blackstone Secured Lending Fund was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Blackstone Secured Lending Fund belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Company Overview & Q2 2025 Highlights](index=1&type=section&id=1.%20Company%20Overview%20%26%20Q2%202025%20Highlights) Blackstone Secured Lending Fund (BXSL) is a specialized finance company investing in private US company debt, externally managed by Blackstone Inc. affiliates, reporting strong Q2 2025 results with fully covered dividends and healthy credit performance [Company Introduction](index=2&type=section&id=1.1.%20Company%20Introduction) Blackstone Secured Lending Fund (BXSL) is a specialized finance company primarily investing in US private company debt, regulated as a BDC and externally managed by Blackstone Inc. affiliates - Blackstone Secured Lending Fund (BXSL) is a specialized finance company primarily investing in **US private company debt**, regulated as a **Business Development Company (BDC)** under the Investment Company Act of 1940[6](index=6&type=chunk) - BXSL is externally managed by Blackstone Private Credit Strategies LLC, an affiliate of Blackstone Inc., which managed **$1.2 trillion in assets** as of June 30, 2025[6](index=6&type=chunk) Investments at Fair Value (as of June 30, 2025) | Metric | Amount | | :----- | :---- | | Investments at Fair Value | ~$13.3 billion | | Blackstone Inc. Total Assets Under Management | $1.2 trillion | [Executive Summary of Q2 2025 Results](index=1&type=section&id=1.2.%20Executive%20Summary%20of%20Q2%202025%20Results) BXSL reported strong Q2 2025 performance with $0.77 Net Investment Income per share fully covering quarterly dividends, maintaining healthy credit performance with a low non-accrual rate - BXSL reported strong quarterly results with **Net Investment Income per share of $0.77**, fully covering the quarterly dividend[2](index=2&type=chunk) - Credit performance remained healthy with a **very low non-accrual rate**, supported by a **98.2% first lien senior secured debt investment portfolio** and a **46.9% loan-to-value ratio**[2](index=2&type=chunk) - The company continues a prudent strategy, leveraging Blackstone's scale to benefit portfolio companies and shareholders[2](index=2&type=chunk) [Q3 2025 Dividend Declaration](index=1&type=section&id=1.3.%20Q3%202025%20Dividend%20Declaration) The board declared a Q3 2025 dividend of $0.77 per share, payable around October 24, 2025, to shareholders of record on September 30, 2025 - The board declared a **Q3 2025 dividend of $0.77 per share**[3](index=3&type=chunk) Q3 2025 Dividend Details | Metric | Value | | :----- | :---- | | Dividend Per Share | $0.77 | | Record Date | September 30, 2025 | | Payment Date | Approximately October 24, 2025 | [Second Quarter 2025 Key Performance Indicators](index=4&type=section&id=2.%20Second%20Quarter%202025%20Key%20Performance%20Indicators) This section highlights BXSL's Q2 2025 earnings, investment portfolio status, and liquidity position, demonstrating strong financial health and strategic investment activities [Earnings Highlights](index=4&type=section&id=2.1.%20Earnings%20Highlights) BXSL achieved $176 million in Net Investment Income ($0.77 per share) and $155 million in net income ($0.68 per share) for Q2 2025, with NAV at $27.33 per share - BXSL's efficient balance sheet structure supports consistent regular dividends through **strong earnings power**[11](index=11&type=chunk) Q2 2025 Earnings Summary | Metric | Q2 2025 | Prior Quarter | Q2 2024 | | :-------------------------------- | :------ | :------------ | :------ | | Net Investment Income | $176 million | - | - | | Net Investment Income Per Share | $0.77 | $0.83 per share | $0.89 per share | | Net Income | $155 million | $0.66 per share | $1.01 per share | | Net Income Per Share | $0.68 | $0.66 | $1.01 | | Regular Dividend Per Share | $0.77 | - | - | | Dividend Yield | 11.3% | - | - | | Net Asset Value | ~$6.3 billion | - | - | | Net Asset Value Per Share | $27.33 | - | - | | Total Return This Quarter | 2.3% | - | - | | Annualized Total Return Since Inception | 11.4% | - | - | [Portfolio and Investment Activity](index=4&type=section&id=2.2.%20Portfolio%20and%20Investment%20Activity) BXSL's portfolio is well-positioned with 98.9% floating-rate and 98.2% first-lien senior secured debt, a 0.3% non-accrual rate, and $600 million in new commitments this quarter - BXSL's investment portfolio is designed for **strong returns** and **risk mitigation** with **98.9% floating-rate debt** focused on senior secured debt[12](index=12&type=chunk) - The portfolio maintains **healthy underlying credit fundamentals** with only **0.3% of investments on non-accrual status** (at cost)[12](index=12&type=chunk) Q2 2025 Investment Activity | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Weighted Average Yield on Performing Debt Investments (at Fair Value) | 10.2% | | New Investment Commitments This Quarter (at Face Value) | $0.6 billion | | New Investments Funded This Quarter | $0.5 billion | | Proceeds from Sales and Repayments This Quarter | $0.2 billion | [Liquidity Update](index=5&type=section&id=2.3.%20Liquidity%20Update) As of quarter-end, BXSL had $3 billion in liquidity, a 1.13x leverage ratio, and 39% fixed-rate unsecured debt with a 2.88% weighted average coupon Q2 2025 Liquidity and Leverage | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Total Liquidity (Cash and Undrawn Debt) | $3.0 billion | | Leverage Ratio at Quarter-End | 1.13x | | Average Leverage Ratio | 1.13x | | Fixed-Rate Unsecured Debt as % of Total Debt | 39% | | Weighted Average Coupon on Fixed-Rate Debt | 2.88% | | Weighted Average Interest Rate on Drawn Debt | 5.03% | | Weighted Average Maturity of Debt Instruments | ~3.3 years | [Detailed Financial Statements](index=10&type=section&id=3.%20Detailed%20Financial%20Statements) This section provides a comprehensive overview of BXSL's Q2 2025 operating results, financial condition, and Net Asset Value reconciliation, detailing key financial movements [Summary of Operating Results](index=10&type=section&id=3.1.%20Summary%20of%20Operating%20Results) BXSL reported $345 million in total investment income and $176 million in Net Investment Income for Q2 2025, with net realized and unrealized losses totaling $21 million Summary of Operating Results (Q2 2025 vs. Q2 2024) | Metric (Millions USD) | 2Q'24 | 2Q'25 | 2Q'24 LTM | 2Q'25 LTM | | :----------------------------------- | :---- | :---- | :-------- | :-------- | | **Investment Income** | | | | | | Interest Income | $303 | $321 | $1,147 | $1,311 | | Payment-in-Kind Interest Income | $23 | $22 | $80 | $83 | | Fee Income | $1 | $1 | $3 | $4 | | Total Investment Income | $327 | $345 | $1,219 | $1,398 | | **Operating Expenses** | | | | | | Interest Expense | $79 | $92 | $279 | $366 | | Management Fees | $28 | $35 | $103 | $131 | | Income-Based Incentive Fees | $37 | $35 | $143 | $146 | | Capital Gains-Based Incentive Fees | $3 | - | $6 | $(6) | | Other Operating Expenses | $3 | $4 | $14 | $13 | | Total Expenses | $151 | $166 | $545 | $649 | | Net Investment Income After Taxes | $173 | $176 | $672 | $733 | | **Net Realized and Unrealized Gains (Losses)** | | | | | | Net Realized Gains (Losses) | $2 | $(10) | $6 | $(13) | | Net Change in Unrealized Appreciation (Depreciation) | $21 | $(11) | $30 | $(102) | | Net Realized and Unrealized Gains (Losses) | $23 | $(21) | $36 | $(114) | | Net Increase (Decrease) in Net Assets Resulting from Operations | $196 | $155 | $708 | $619 | Per Share Data (Q2 2025 vs. Q2 2024) | Metric | 2Q'24 | 2Q'25 | 2Q'24 LTM | 2Q'25 LTM | | :----------------------------------- | :---- | :---- | :-------- | :-------- | | Net Investment Income Per Share (Basic and Diluted) | $0.89 | $0.77 | $3.67 | $3.35 | | Earnings (Loss) Per Share (Basic and Diluted) | $1.01 | $0.68 | $3.86 | $2.84 | | Dividends Declared Per Share (Regular) | $0.77 | $0.77 | $3.08 | $3.08 | | Weighted Average Shares Outstanding (Basic and Diluted) | 193,908,352 | 228,192,335 | N/A | N/A | [Summary Statements of Financial Condition](index=11&type=section&id=3.2.%20Summary%20Statements%20of%20Financial%20Condition) As of June 30, 2025, BXSL's investments at fair value reached $13.253 billion, with total assets of $13.711 billion, and Net Asset Value per share at $27.33 Summary Statements of Financial Condition (as of June 30, 2025) | Metric (Millions USD) | June 30, 2024 | March 31, 2025 | June 30, 2025 | | :----------------------------------- | :-------- | :-------- | :-------- | | **Assets** | | | | | Investments at Fair Value | $11,294 | $12,834 | $13,253 | | Cash and Cash Equivalents | $291 | $245 | $274 | | Total Assets | $11,770 | $13,969 | $13,711 | | **Liabilities and Net Assets** | | | | | Debt (Net of Unamortized Debt Issuance Costs) | $6,084 | $7,383 | $7,091 | | Total Liabilities | $6,376 | $7,728 | $7,423 | | Total Net Assets | $5,395 | $6,241 | $6,288 | | Total Liabilities and Net Assets | $11,770 | $13,969 | $13,711 | | Net Asset Value Per Share | $27.19 | $27.39 | $27.33 | [Net Asset Value (NAV) Reconciliation](index=15&type=section&id=3.3.%20Net%20Asset%20Value%20(NAV)%20Reconciliation) NAV per share slightly decreased from $27.39 to $27.33 as of June 30, 2025, primarily due to dividends and net realized/unrealized losses, partially offset by NII and equity increases - Net Asset Value per share decreased from **$27.39** as of March 31, 2025, to **$27.33** as of June 30, 2025[41](index=41&type=chunk) Net Asset Value Per Share Reconciliation (Q2 2025) | Item | Impact Per Share | | :-------------------------------- | :--------------- | | NAV as of March 31, 2025 | $27.39 | | Net Investment Income | $0.77 | | Regular Dividends | $(0.77) | | Net Realized and Unrealized Gains (Losses) | $(0.09) | | Net Increase in Equity | $0.03 | | NAV as of June 30, 2025 | $27.33 | [Portfolio Analysis](index=7&type=section&id=4.%20Portfolio%20Analysis) This section analyzes BXSL's investment portfolio characteristics, highlighting its composition by debt type, LTV, non-accrual rates, and diversification across industries and companies [Portfolio Characteristics](index=7&type=section&id=4.1.%20Portfolio%20Characteristics) BXSL's $13.3 billion portfolio is 98.9% floating-rate and 98.2% first-lien senior secured debt, with an average LTV of 46.9% and only 1.3% non-accrual debt, indicating strong capital protection Portfolio Characteristics (as of June 30, 2025) | Metric | Value | | :------------------------------------------ | :------ | | Investments at Fair Value | $13.3 billion | | Floating-Rate Debt Investments | 98.9% | | First Lien Senior Secured Debt Investments | 98.2% | | Average Loan-to-Value (LTV) | 46.9% | | Non-Accrual Debt Investments (at Cost) | 1.3% | | Number of Portfolio Companies | 295 | - The portfolio is predominantly **first lien debt** with a **low average loan-to-value ratio** and **minimal non-accrual debt investments**, indicating strong capital protection[18](index=18&type=chunk) [Portfolio Construction (Top Companies & Industries)](index=8&type=section&id=4.2.%20Portfolio%20Construction%20(Top%20Companies%20%26%20Industries)) BXSL's highly diversified portfolio spans 295 companies and 40 industries, with no single issuer exceeding 3% and major exposures in software, healthcare, professional services, and insurance - The portfolio is diversified across **295 portfolio companies** and **40 distinct industries**, with no single issuer exceeding **3% of the portfolio**[23](index=23&type=chunk) Top Ten Industries (as of June 30, 2025) | Industry | % of Portfolio | | :-------------------------------- | :------------- | | Software | 20% | | Healthcare Providers & Services | 10% | | Professional Services | 9% | | Insurance | 8% | | Commercial Services & Supplies | 8% | | IT Services | 5% | | Healthcare Technology | 5% | | Aerospace & Defense | 4% | | Diversified Consumer Services | 4% | | Distributors | 3% | - The largest industry exposures are concentrated in **software**, **healthcare providers & services**, **professional services**, and **insurance**[23](index=23&type=chunk) [Dividend Performance](index=9&type=section&id=5.%20Dividend%20Performance) This section details BXSL's dividend coverage history, showing consistent dividend payments fully covered by Net Investment Income, along with associated dividend yields [Dividend Coverage History](index=9&type=section&id=5.1.%20Dividend%20Coverage%20History) BXSL's Q2 2025 regular dividend of $0.77 per share was fully covered by Net Investment Income, achieving a 100% coverage ratio and an 11.3% annualized dividend yield - The **Q2 2025 regular dividend was $0.77 per share**, with an **annualized dividend yield of 11.3%**[27](index=27&type=chunk) - Net Investment Income per share fully covered the dividend, with a **dividend coverage ratio of 100%** for Q2 2025[27](index=27&type=chunk) Historical Dividend Coverage and Yield | Quarter | Regular Dividend ($) | Net Investment Income ($) | Regular Dividend Yield | Regular Dividend Coverage | | :------ | :------------------- | :------------------------ | :--------------------- | :------------------------ | | 2Q'24 | $0.77 | $0.89 | 8.2% | 117% | | 3Q'24 | $0.77 | $0.91 | 9.3% | 133% | | 4Q'24 | $0.77 | $0.84 | 9.3% | 150% | | 1Q'25 | $0.77 | $0.83 | 10.7% | 133% | | 2Q'25 | $0.77 | $0.77 | 11.3% | 100% | [Investment Activity Details](index=12&type=section&id=6.%20Investment%20Activity%20Details) This section provides a detailed breakdown of BXSL's Q2 2025 investment activities, including originations, fundings, sales, and repayments, along with the weighted average yield of new investments [Originations and Fundings](index=12&type=section&id=6.1.%20Originations%20and%20Fundings) BXSL's Q2 2025 net funded investment activity was $300 million, with $600 million in new commitments, $500 million funded, and $200 million recovered from sales and repayments - Net funded investment activity for the quarter was **$300 million**[33](index=33&type=chunk) Q2 2025 Investment Activity Summary | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Investment Commitments (at Face Value) | $631 million | | Investment Fundings | $530 million | | Investments Sold | $(10) million | | Investments Repaid | $(175) million | | Net Funded Investment Activity | $345 million | | Average New Investment Commitment | $23 million | | Number of New Portfolio Companies | 15 | | Weighted Average Yield on New Investments | 9.8% | | Weighted Average Yield on Investments Fully Sold or Repaid | 10.3% | - New investment commitments totaled **$600 million** (at face value), with **$500 million in investment fundings**. Proceeds from sales and repayments amounted to **$200 million**[33](index=33&type=chunk) [Funding and Capital Structure](index=13&type=section&id=7.%20Funding%20and%20Capital%20Structure) This section outlines BXSL's well-structured and diversified capital, including liquidity, debt composition, and investment-grade credit ratings, positioning it favorably in the current market [Funding Profile Overview](index=13&type=section&id=7.1.%20Funding%20Profile%20Overview) BXSL maintains a well-structured, diversified, and efficient capital structure with $3 billion in liquidity, 39% fixed-rate unsecured debt at 2.88% WAC, and limited near-term debt maturities, supported by investment-grade credit ratings - BXSL maintains a well-structured, diversified, and efficient capital structure with **$3 billion in available liquidity** as of June 30, 2025[38](index=38&type=chunk) - The company is well-positioned in the current environment with **39% fixed-rate unsecured debt** at a **2.88% weighted average coupon** and only **$2.9 billion in debt maturing over the next two years**[38](index=38&type=chunk) - BXSL maintains **investment-grade corporate credit ratings** from Moody's (Baa2/Stable), S&P (BBB-/Positive), and Fitch (BBB/Stable)[38](index=38&type=chunk) [Funding Sources Summary](index=18&type=section&id=7.2.%20Funding%20Sources%20Summary) BXSL's funding sources comprise various asset-backed facilities, a revolving credit facility, and unsecured notes with diverse maturities and rates, totaling $7.108 billion in outstanding principal at a 5.03% weighted average interest rate Funding Sources Summary (as of June 30, 2025) | Facility/Notes | Interest Rate | Maturity Date | Committed Principal (Millions USD) | Total Outstanding Principal (Millions USD) | | :-------------------------------- | :------------ | :------------ | :----------------------- | :--------------------- | | Jackson Hole Funding | SOFR + 1.95% | May 17, 2027 | $500 | $100 | | Breckenridge Funding | SOFR + 1.90% | June 18, 2029 | $1,175 | $596 | | Big Sky Funding | SOFR + 1.85% | September 30, 2027 | $650 | $343 | | Revolving Credit Facility | SOFR + 1.525%-1.775% | August 12, 2029 | $2,325 | $1,211 | | 2026 Notes | 3.625% | January 15, 2026 | $800 | $800 | | New 2026 Notes | 2.750% | September 16, 2026 | $700 | $700 | | 2027 Notes | 2.125% | February 15, 2027 | $650 | $650 | | 2028 Notes | 2.850% | September 30, 2028 | $650 | $650 | | November 2027 Notes | 5.875% (Swapped) | November 15, 2027 | $400 | $400 | | April 2028 Notes | 5.350% (Swapped) | April 13, 2028 | $700 | $700 | | June 2030 Notes | 5.300% (Swapped) | June 30, 2030 | $500 | $500 | | BXSL 2024-1 CLO | SOFR + 1.51%-1.78% | October 20, 2036 | $458 | $458 | | BXSL 2025-1 Facility | SOFR + 1.65% | December 27, 2028 | $400 | - | | **Total** | **5.03% (Weighted Average)** | | **$9,908** | **$7,108** | - As of June 30, 2025, total outstanding debt (principal) was **$7.108 billion**, with a **weighted average interest rate of 5.03%**[45](index=45&type=chunk) [Comparative Financial Highlights](index=16&type=section&id=8.%20Comparative%20Financial%20Highlights) This section presents a comparative analysis of BXSL's operating results, balance sheet, and portfolio metrics across recent quarters, illustrating trends in profitability, asset growth, and portfolio composition [Comparative Operating Results](index=16&type=section&id=8.1.%20Comparative%20Operating%20Results) From Q2 2024 to Q2 2025, Net Investment Income per share decreased from $0.89 to $0.77, and earnings per share from $1.01 to $0.68, indicating a decline in profitability despite stable total investment income Comparative Operating Results (Quarterly Trends) | Metric (Millions USD) | 2Q'24 | 3Q'24 | 4Q'24 | 1Q'25 | 2Q'25 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Total Investment Income | $327 | $343 | $353 | $358 | $345 | | Net Investment Income After Taxes | $173 | $186 | $183 | $189 | $176 | | Net Realized and Unrealized Gains (Losses) | $23 | $(34) | $(20) | $(39) | $(21) | | Net Increase (Decrease) in Net Assets Resulting from Operations | $196 | $152 | $162 | $150 | $155 | | Net Investment Income Per Share (Basic and Diluted) | $0.89 | $0.91 | $0.84 | $0.83 | $0.77 | | Earnings (Loss) Per Share (Basic and Diluted) | $1.01 | $0.75 | $0.75 | $0.66 | $0.68 | | Dividends Declared Per Share (Regular) | $0.77 | $0.77 | $0.77 | $0.77 | $0.77 | | Weighted Average Shares Outstanding (Basic and Diluted) | 193,908,352 | 203,419,337 | 217,362,279 | 226,577,167 | 228,192,335 | - Net Investment Income per share and earnings per share generally showed a **downward trend** from Q2 2024 to Q2 2025[43](index=43&type=chunk) [Comparative Balance Sheet and Portfolio Metrics](index=17&type=section&id=8.2.%20Comparative%20Balance%20Sheet%20and%20Portfolio%20Metrics) From Q2 2024 to Q2 2025, investments at fair value grew from $11.294 billion to $13.253 billion, while NAV per share remained stable and portfolio companies increased from 231 to 295 Comparative Balance Sheet and Portfolio Metrics (Quarterly Trends) | Metric | 2Q'24 | 3Q'24 | 4Q'24 | 1Q'25 | 2Q'25 | | :------------------------------------------ | :---- | :---- | :---- | :---- | :---- | | Investments at Fair Value (Millions USD) | $11,294 | $11,626 | $13,093 | $12,834 | $13,253 | | Total Outstanding Debt, Principal (Millions USD) | $6,112 | $6,403 | $7,094 | $7,414 | $7,108 | | Net Asset Value (Millions USD) | $5,395 | $5,701 | $6,077 | $6,241 | $6,288 | | Net Asset Value Per Share | $27.19 | $27.27 | $27.39 | $27.39 | $27.33 | | Debt to Equity Ratio at Period End | 1.13x | 1.12x | 1.17x | 1.19x | 1.13x | | First Lien % | 98.6% | 98.7% | 98.0% | 98.2% | 98.2% | | Weighted Average Yield on Performing Debt | 11.6% | 11.2% | 10.4% | 10.2% | 10.2% | | Number of Portfolio Companies | 231 | 252 | 276 | 284 | 295 | - The company significantly expanded its portfolio, increasing the **number of portfolio companies from 231 to 295**, while maintaining a **high percentage of first lien debt**[44](index=44&type=chunk) [Important Disclosures](index=2&type=section&id=9.%20Important%20Disclosures) This section includes critical disclaimers regarding forward-looking statements, emphasizing inherent risks and uncertainties, and provides contact information for various inquiries [Forward-Looking Statements](index=2&type=section&id=9.1.%20Forward-Looking%20Statements) This section states that the communication contains forward-looking statements subject to risks and uncertainties, which may cause actual results to differ materially, and BXSL disclaims any obligation to update them - The report contains forward-looking statements, identifiable by terms such as 'outlook,' 'expect,' 'potential,' and 'projected'[7](index=7&type=chunk)[48](index=48&type=chunk) - These statements are subject to various risks and uncertainties, and actual results may differ materially from those indicated[7](index=7&type=chunk)[48](index=48&type=chunk) - Except as required by federal securities law, BXSL assumes no obligation to publicly update or revise any forward-looking statements[7](index=7&type=chunk)[48](index=48&type=chunk) [Contacts](index=2&type=section&id=9.2.%20Contacts) Contact information is provided for investor relations, fund and portfolio inquiries, and media relations - Contact information is provided for investors, fund and portfolio inquiries, and media[8](index=8&type=chunk)

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Blackstone Secured Lending Fund as of June 30, 2025, covering assets, operations, net assets, cash flows, and investment schedules [Condensed Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets and net assets increased by June 30, 2025, driven by investment growth, though Net Asset Value per share slightly decreased Condensed Consolidated Statements of Assets and Liabilities (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total investments at fair value | $13,252,800 | $13,092,518 | | Total assets | $13,710,955 | $13,472,224 | | Total liabilities | $7,422,659 | $7,395,703 | | Total net assets | $6,288,296 | $6,076,521 | | **NET ASSET VALUE PER SHARE** | **$27.33** | **$27.39** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw increased total investment income and net investment income, but net assets from operations decreased due to realized and unrealized losses Q2 2025 vs Q2 2024 Performance (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total investment income | $344,803 | $327,064 | | Net investment income after tax | $175,902 | $173,098 | | Net increase in net assets | $155,042 | $196,186 | | Net investment income per share | $0.77 | $0.89 | | Earnings per share | $0.68 | $1.01 | Six Months 2025 vs 2024 Performance (in thousands, except per share amounts) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total investment income | $702,567 | $631,024 | | Net investment income after tax | $364,697 | $338,946 | | Net increase in net assets | $304,851 | $379,941 | | Net investment income per share | $1.60 | $1.76 | | Earnings per share | $1.34 | $1.98 | [Condensed Consolidated Statements of Changes in Net Assets](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased for the six months ended June 30, 2025, primarily due to share issuances and investment income, partially offset by dividends and losses Changes in Net Assets for the Six Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Balance, December 31, 2024** | **$6,076,521** | | Issuance of Common Shares, net | $248,842 | | Reinvestment of dividends | $10,510 | | Net investment income | $364,697 | | Net realized gain (loss) | ($4,672) | | Net change in unrealized depreciation | ($55,174) | | Dividends declared | ($352,428) | | **Balance, June 30, 2025** | **$6,288,296** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated significant cash for the six months ended June 30, 2025, improving from the prior year and increasing cash and equivalents Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $203,604 | ($1,104,710) | | Net cash provided by (used in) financing activities | ($161,743) | $1,241,128 | | Net increase (decrease) in cash and cash equivalents | $41,861 | $136,418 | | **Cash and cash equivalents, end of period** | **$273,678** | **$291,292** | [Condensed Consolidated Schedules of Investments](index=12&type=section&id=Condensed%20Consolidated%20Schedules%20of%20Investments) The June 30, 2025, investment portfolio is primarily first lien debt, diversified across industries with Software as the largest sector, and largely US-concentrated Investment Portfolio Composition as of June 30, 2025 | Investment Type | Fair Value (in thousands) | % of Total | | :--- | :--- | :--- | | First lien debt | $13,015,201 | 98.2% | | Second lien debt | $122,942 | 0.9% | | Unsecured debt | $13,721 | 0.1% | | Equity | $100,936 | 0.8% | | **Total** | **$13,252,800** | **100.0%** | Top 5 Industry Concentrations as of June 30, 2025 | Industry | % of Total Fair Value | | :--- | :--- | | Software | 20.3% | | Professional Services | 8.8% | | Commercial Services & Supplies | 8.2% | | Insurance | 8.2% | | Health Care Providers & Services | 9.6% | - As of June 30, 2025, the company had unfunded commitments totaling approximately **$1.87 billion**[109](index=109&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=88&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, investment valuation, related party agreements, portfolio specifics, borrowings, net assets, and subsequent events - The company is an externally managed BDC that has elected to be treated as a RIC for tax purposes, with investment objectives focused on current income and long-term capital appreciation[202](index=202&type=chunk)[204](index=204&type=chunk) - The company pays a management fee at an annual rate of **1.0%** of average gross assets and a two-part incentive fee based on income (**17.5%** over a **1.5%** quarterly hurdle with a lookback and cap) and capital gains (**17.5%**)[255](index=255&type=chunk)[256](index=256&type=chunk)[258](index=258&type=chunk) - As of June 30, 2025, the company's asset coverage ratio was **188.5%**, exceeding the required **150%** minimum for BDCs[307](index=307&type=chunk) - Subsequent to quarter end, on August 6, 2025, the Board declared a distribution of **$0.77 per share**, and on August 4, 2025, the Revolving Credit Facility was amended to increase commitment to **$2.4 billion** and extend maturity[399](index=399&type=chunk)[400](index=400&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=131&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, including investment income, expenses, portfolio activity, net assets, liquidity, borrowings, and macroeconomic impacts - For Q2 2025, total investment income increased by **5%** YoY to **$344.8 million**, primarily due to a **20%** increase in average investments at fair value[418](index=418&type=chunk) - Total interest expense for Q2 2025 rose **17%** YoY to **$92.3 million**, driven by a higher average principal of debt outstanding, which increased from **$5.8 billion** to **$7.2 billion**[426](index=426&type=chunk) - The company had **$273.7 million** in cash and **$2.7 billion** available to borrow under its credit facilities as of June 30, 2025, expected to be sufficient for near-term operations and investing activities[450](index=450&type=chunk)[452](index=452&type=chunk) - Management notes that while elevated interest rates have favorably impacted investment income, they also pose a risk to portfolio companies' credit quality and could lead to nonperformance if economic conditions weaken[424](index=424&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=143&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details the company's market risk exposure, primarily interest rate risk, with a sensitivity analysis on net income due to floating-rate debt investments - As of June 30, 2025, **99.8%** of the company's debt investments by fair value bore floating interest rates, making net investment income sensitive to changes in benchmark rates[472](index=472&type=chunk) Hypothetical Annualized Impact of Interest Rate Changes on Net Income (in thousands) | Basis Point Change | Impact on Net Income | | :--- | :--- | | Up 300 bps | $322,883 | | Up 200 bps | $215,255 | | Up 100 bps | $107,628 | | Down 100 bps | ($107,621) | | Down 200 bps | ($214,477) | | Down 300 bps | ($317,228) | [Item 4. Controls and Procedures](index=143&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The Co-Chief Executive Officers and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[475](index=475&type=chunk) - No changes in internal control over financial reporting occurred during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[476](index=476&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=145&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - As of the filing date, the company is not a party to any material legal proceedings[479](index=479&type=chunk) [Item 1A. Risk Factors](index=145&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the latest Annual Report on Form 10-K are reported - No material changes to risk factors from the latest Annual Report on Form 10-K are reported[480](index=480&type=chunk) [Item 5. Other Information](index=145&type=section&id=Item%205.%20Other%20Information) Discloses an amendment to the Revolving Credit Facility, increasing commitment and extending maturity, and a change in executive officers - On August 4, 2025, the company amended its Revolving Credit Facility, increasing the aggregate committed principal to **$2.4 billion** and extending the maturity date to August 4, 2030[484](index=484&type=chunk) - Effective August 4, 2025, Lucie Enns was appointed as the Chief Legal Officer and Secretary, following the resignation of Oran Ebel[485](index=485&type=chunk)[486](index=486&type=chunk)

Group 1 - Major banks reported earnings last week, with JPMorgan (JPM) exceeding expectations and raising guidance, while Wells Fargo (WFC) reduced its net interest income (NII) guidance from previous estimates [1] - Inflation has risen, which is likely impacting the financial performance of banks and the broader economy [1] Group 2 - The article emphasizes the importance of individual due diligence in investment decisions, particularly in the context of dividend investing in quality blue-chip stocks, BDCs, and REITs [1]

Group 1 - The private credit and business development company (BDC) segments have faced significant volatility in 2023, with a relatively stable outlook for 2025, lacking clear growth catalysts or impediments [1] - A major tariff announcement has impacted the overall sentiment in the private credit and BDC sectors, indicating potential challenges ahead [1] - Roberts Berzins has extensive experience in financial management and has contributed to the development of financial strategies and frameworks in Latvia, particularly in enhancing the liquidity of pan-Baltic capital markets [1]

Group 1 - Blackstone Secured Lending Fund (NYSE: BXSL) is recognized as a top-tier business development company with a sustainable dividend yield supported by solid fundamentals [1] - Roberts Berzins has over a decade of experience in financial management, aiding top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] Group 2 - Berzins has been involved in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] - He holds a CFA Charter and an ESG investing certificate, and has interned at the Chicago Board of Trade [1] - Berzins actively participates in thought-leadership activities to support the development of pan-Baltic capital markets [1]

Group 1 - The Blackstone Secured Lending Fund (NYSE: BXSL) is a business development corporation (BDC) that focuses on lending to private companies [1] - The fund exclusively invests in first lien debt, which is considered relatively safe by private credit standards [1]

Core Insights - Blackstone Secured Lending Fund (BXSL) is highlighted as a recommended Business Development Company (BDC) during the market dip in April 2025, attributed to the impact of Trump's international trade policies on U.S.-China relations [1] Company Overview - The company focuses on dividend investing as a means to achieve financial freedom, emphasizing its accessibility for investors [1] - The analyst has extensive experience in mergers and acquisitions (M&A) and business valuation, which informs their investment strategies [1] Investment Strategy - The investment approach includes financial modeling, commercial and financial due diligence, and negotiation of deal terms, indicating a thorough analysis of potential investments [1] - The sectors of focus include technology, real estate, software, finance, and consumer staples, which form the core of the analyst's portfolio [1] Community Engagement - The motivation for sharing insights on platforms like Seeking Alpha is to enhance personal knowledge and assist others in their investment journeys, particularly in dividend investing [1]

Core Insights - The article discusses the impact of recent economic trends on the investment banking sector, highlighting both opportunities and challenges faced by firms in the industry [1] Group 1: Economic Trends - The investment banking industry is experiencing a shift due to rising interest rates, which are expected to affect deal-making activities [1] - Increased volatility in the stock market has led to a decline in IPOs, with a reported drop of 30% year-over-year [1] Group 2: Company Performance - Major investment banks have reported mixed earnings, with some firms showing resilience while others struggle to adapt to the changing market conditions [1] - Cost-cutting measures are being implemented by several firms to maintain profitability amid declining revenues [1] Group 3: Future Outlook - Analysts predict a potential rebound in M&A activity as companies look to consolidate in a challenging economic environment [1] - The focus on technology and digital transformation is expected to drive future growth opportunities within the investment banking sector [1]

Group 1 - Blackstone Secured Lending (NYSE: BXSL) experienced a 23% increase in its portfolio compared to the same period last year due to new investments [1] - The investment firm's net investment income also saw double-digit growth year-over-year [1] - The coverage profile of the firm has shown improvements, indicating a positive trend in its financial health [1]